TLDR: Tech Layoffs Expected to Continue Amid AI Boom, Analyst Says
Over 20,000 tech employees were laid off in January 2024, and more layoffs may be on the way as companies shift their focus and spending to AI. According to tracker site Layoffs.fyi, 89 tech companies have already laid off almost 25,000 employees in the tech industry. Analysts predict that there will be more redundancies across the industry this year as companies prioritize spending on AI.
- Over 20,000 tech workers were laid off in January 2024.
- 89 tech companies have laid off almost 25,000 employees already.
- Companies are shifting their focus and spending to AI, resulting in layoffs in non-strategic areas.
- Analyst predicts more layoffs in the tech industry this year as companies bet big on AI.
According to Dan Ives, a tech analyst at Wedbush Securities, big tech companies like Google are cutting back on non-strategic areas while heavily investing in AI. This shift will lead to layoffs in certain areas while creating a hiring frenzy in the AI sector.
Google recently cut hundreds of roles focused on Google Assistant and its fitness tracker Fitbit. However, the company has released a slate of AI products like its new Google Chrome features and plans to eliminate more roles this year. Similarly, Amazon is cutting “several hundred” employees across Prime Video and Amazon MGM Studios, while increasing its investments in AI.
While growing investment in AI may lead to job cuts, new AI-focused roles are being created by companies like Apple, Meta, and Nvidia. These companies are actively looking to hire experts in machine learning and natural language processing at high salaries, indicating a strong demand for generative AI talent.
In conclusion, while the AI boom may result in layoffs in non-strategic areas, it also presents opportunities for individuals with AI expertise to secure high-paying jobs. As companies continue to prioritize AI, the hiring frenzy in the AI sector is expected to be unprecedented.